ASIC stops Sportsbet’s bets on S&P/ASX

ASIC/remote-working/

16 April 2020
| By Jassmyn |
image
image
expand image

The corporate regulator has stopped Sportsbet from offering bets over the performance of the S&P/ASX 200, with the betting agency claiming it had challenges with staff working remotely.

On 1 April, Sportsbet allowed punters to bet on whether the Australian Securities Exchange (ASX) would close higher or lower from opening, bet on the final digit of the closing price, or whether the close price would be an odd number or an even number.

The Australian Securities and Investments Commission (ASIC) announced it had intervened with the betting agency following concerns that the bets constituted a financial product that Sportsbet was not licensed to offer, and the product was consequently withdrawn.

Sportsbet told ASIC it had challenges in implementing its control framework in the current environment as many staff were working remotely.

“Firms need to ensure continued compliance with their regulatory obligations in the COVID-19 context, assessing the effectiveness of their business continuity plans and alternative working arrangements so as to comply with all regulatory requirements,” ASIC said.

“It is important to maintain robust monitoring and supervision controls to ensure financial services are provided efficiently, honestly and fairly.”

ASIC noted that the control frameworks of some firms that were effective when most staff were office-based might not be effective in a broadly home-based environment.

At the time the betting agency launched the product, Sportsbet’s spokesperson, Rich Hummerston said: “Well, they’ve always said the stockmarket is just gambling, and now, it literally is. And during these times, our markets are probably safer than the actual stockmarket”.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND